Which of the following statements about trade deficits is FALSE?
A. Budget deficits tend to produce trade deficits.
B. The U.S. has run a trade deficit for about 40 years.
C. The U.S. trade deficit widened sharply in the1990s.
D. A trade deficit makes it less likely that foreigners will make investments in a country.
Answer: D
You might also like to view...
Refer to the figure below. Player A can infer that Player B will: 
A. Player A cannot infer anything about what Player B will do given this matrix. B. choose Right. C. choose Left when A chooses Up and choose Right when A chooses Down. D. choose Left.
If there are five firms in an industry, each with a market share of 20 percent, the Herfindahl-Hirschman Index (HHI) of concentration is
A) 2000. B) 400. C) 100. D) 20.
If you can't prevent people from consuming something, then:
A. they have little reason to pay for using it. B. the good is not excludable. C. individuals will likely use it for free. D. All of these statements are true.
A price decrease will cause total revenue to fall if
A. Demand is inelastic. B. Demand is unitary elastic. C. The price elasticity of demand is less than zero. D. Demand is elastic.